The leading automobile manufacturer Volkswagen Group in joint venture with the Swedish battery producer Northvolt AB is gaining further momentum. As per deal Volkswagen will erect the buildings and infrastructure for the joint ventures Northvolt Zwei factory that is to produce lithium-ion battery cells, in order to leverage synergies at the Salzgitter site based on the existing Center of Excellence for Battery Cells.
Approximately $489 million to be invested in this project. The joint venture will then rent the factory space. Battery cell production at the plant is scheduled to commence in early 2024 with an initial production capacity of 16 gigawatt hours.
Earlier in September 2019, Volkswagen and Northvolt established a joint venture to prepare for the large-scale production of lithium-ion batteries in Germany. Volkswagens commitment to erect the buildings and infrastructure is the next key strategic decision.
The prominent deals and investments by Volkswagen are mentioned below:
- April 2020: Volkswagen Group has announced the production face shield holders by 3D printing. This is part of a joint transnational initiative with Airbus and the 3D printing network Mobility goes Additive, which includes about 250 companies. The products developed by Airbus will be used in Spain and will be flown from Hamburg to Madrid by Airbus. There are many other initiatives by Volkswagen Group brands to produce medical products and supplies.
- April 2020: Automobili Lamborghini, the subsidiary of Volkswagen AG announced its plans to involve in the fight against the Covid-19 pandemic. Lamborghini will produce surgical masks and protective medical shields for the SantOrsola-Malpighi Hospital in Bologna at its production plant in SantAgata Bolognese in collaboration with the University of Bologna.
Lamborghini will manufacture one thousand masks a day will be made in the Upholstery Department, the department that produces the interiors and customizations for Lamborghini cars. The company also manufacture 200 protective medical shields in polycarbonate a day will be made inside the composites production plant and at the Research and Development department with the use of 3D printers.
- January 2020: Automobili Lamborghini announced new partnership with The LEGO Group to introduce the first ever Lamborghini super sports car by LEGO Technic, the building system that allows older kids and adults to create more advanced, complex models.
- January 2020: Volkswagen AG plans to acquire a 20% stake in Chinese electric vehicle battery maker Guoxuan High-tech Co. The deal will accelerate Volkswagens electric vehicle push into the worlds largest auto market.
- January 2020: The Volkswagen Group has agreed to acquire remaining shares in diconium, a digital solutions provider. The acquisition of diconium will strengthen the Volkswagens capabilities in the field of digital sales solutions. After the completion of the deal, the company will develop a global online sales platform that will allow customers of all Group brands to purchase and manage digital services.
- December 2019: Volkswagen Group China, along with its Chinese partners plans to invest US$4.4 billion to enhance e-mobility in 2020. The investment will accelerate the Groups electrification strategy in Chinese and neighboring markets. The production of vehicles based on the modular electric drive toolkit MEB in Anting (SAIC VOLKSWAGEN) and Foshan (FAW-Volkswagen) will begin in 2020. Both Volkswagen factories are designed for manufacturing all-electric cars.
- November 2019: Volkswagen Group had announced plans to invest US$66 billion in electrification by 2024. The German automaker wants to switch into electric, hybrid, and future connected vehicles around the world. The company is planning to introduce 75 all-electric models and around 60 hybrid vehicles over the next decade. The automaker has a fixed target to sell approximately 26 million all-electric vehicles by 2029, as well as approximately six million hybrid vehicles to the customers. The company is also planning to hit new European carbon dioxide (CO2) emissions targets by the same year.
- October 2019: Volkswagen has launched a pilot project in Rwanda, to test the possibility of electric mobility in partnership with Siemens. Volkswagen has signed a joint development deal with Siemens to provide the charging infrastructure for the electric vehicles. In the pilot phase, four e-Golfs and one charging station will be established in the capital of Rwanda, Kigali.
- May 2019: The Volkswagen Group has announced an investment in Northvolt AB, a Swedish battery cell producer. The group will invest approximately $1 billion in joint battery activities with Northvolt. As per agreement Volkswagen will acquire 20% stakes in Swedish Northvolt AB. After the transaction, a 50/50 joint venture will build a 16 GWh battery cell factory in Europe.
About The Volkswagen Group
Wolfsburg based The Volkswagen Group, is one of the worlds leading automobile manufacturers and the largest carmaker in Europe. The Volkswagen Group comprises of twelve global brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, Lamborghini, KODA, Bentley, Bugatti, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its character and operates as an independent entity on the market. The group offers broad ranges of products, from motorcycles to small cars and luxury vehicles. The Volkswagen Group operates approximately 122 production plants in 20 European countries and 11 countries in the Americas, Asia, and Africa. Around 664,496 employees worldwide produce vehicles and work in auto-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries worldwide.
Volkswagen has always made affordable mobility solutions for millions of people. The company is transforming the mobility system with new electric drive, digital networking, and autonomous driving technology. Towards sustainable driving environment, the R&D team of company emphases on automobile clean, quiet, intelligent, and safe driving experience for future generations.
The Commercial Vehicles Business Area of Volkswagen Group primarily includes the activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, buses, heavy trucks and motorcycles, as well as genuine parts. The partnership between the MAN and Scania vehicle brands is coordinated within the TRATON GROUP. The Power Engineering Business Area of the company includes the large bore diesel engines, turbomachinery, special gear units, propulsion components, and testing systems businesses. The group produces approximately 44,000 vehicles each working day. The Volkswagen Group comprises of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division of the group includes the Passenger Cars, Commercial Vehicles, and Power Engineering business areas.
Besides of auto mobility business, the Volkswagen Group also offers a wide range of financial services, including leasing, dealer and customer financing, banking and insurance activities, and fleet management.